Mar.23, 2010

A Law Gazette report notes that UK litigation solicitors are being targeted by criminals attempting to launder the proceeds of crime, the Law Society has warned.

It says criminals are seeking to exploit what they perceive to be a 'more relaxed approach' to due diligence by lawyers when they are acting in litigation, which is not covered by the Money Laundering Regulations 2007. Calls to the Law Society's Practice Advice Service and information provided to law enforcement agencies indicate a growing trend of criminal funds being laundered through debt recovery litigation, the report says. Criminals set up a cash-intensive business, create documents to suggest a legitimate debt, and then approach a solicitor to recover it. When the fake debtor makes a payment, the funds are passed through the solicitor's bank account and back to the client, effectively laundered.